Exam 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

Which of the following information, gathered in an analysis of the general environment, would indicate an opportunity for an entrepreneur who wishes to open a business providing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people?

The __________ environment is composed of dimensions in the broader society that influence an industry and the firms within it.

One popular approach to taking care of the physical environment is:

An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, or low rivalry among firms.

Switching costs, access to distribution channels, economies of scale, large numbers of competing firms, and slow industry growth are some of the entry barriers that may affect the threat of new entrants to an industry.

Customer loyalty programs such as airline frequent flyer miles are an attempt to:

PepsiCo's strategy called "capital performance with a purpose" links green efforts in businesses to the bottom line.This is an example of addressing concerns in the sustainable physical segment of the general environment.

Suppliers are powerful when:

In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults.It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele.Afterward, the store lost most of its customers and nearly closed.Which of the following segments of the environment did the store owners fail to take into account when they began selling the lingerie?